Growing optimism about the global economy has led to a spectacular rally of a wide variety of commodities this year, underscoring the talk of a new commodities super cycle.
Prices rose to their best level in 10 years, while, and were trading near their highest level in eight years. the future has also skyrocketed and has set a series of records in recent weeks
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Indeed, the Invesco DB Commodity Index Tracking Fund (NYSE 🙂 – one of the most important ETFs in the industry – is up about 22% since the start of the year to hit its best level since October 2018 . In comparison, it's up 11.5. % over the same time frame.
Below we highlight three leading names in the industry. Each is worth considering given the resurgence in global commodity prices.
1. Freeport-McMoran
Performance year-to-date: + 48.7%
Market Cap: $ 53.6 Billion
Freeport-McMoran (NYSE :), formerly known as Freeport-McMoRan Copper & Gold, is one of the world's largest publicly traded miners. The company, which operates in North America, South America and Indonesia, mainly researches “ molybdenum '' and other metals.
FCX shares are soaring this year, up nearly 50% so far in 2021, as rising base metals prices boosted investor sentiment about the commodity producer. Year over year, the mining giant's shares are up a whopping 337%.
Freeport shares rose to their highest level since November 2012 on Tuesday, before closing at its 10-year high of $ 38.69, giving the Phoenix, Arizona-based miner a market cap of about $ 53. 6 billion.
As one of the world's leading copper producers, it has increased the prices of the red metal, which recently rose above the $ 4.50 level for the first time since March 2011. Those prices are more than double where they were a year ago, when COVID-related shutdowns pushed futures back below $ 2.20.
Investor sentiment further lifted last week when Freeport announced that revenues improved significantly from the same period last year, largely due to higher sales volumes and rising copper prices.
The miner said it surged to a first quarter profit of $ 0.51 per share, compared to a loss per share of $ 0.16 in the same quarter last year. Revenue, meanwhile, was up 74% year-on-year to $ 4.85 billion, the strongest revenue growth in more than eight quarters.
Copper accounted for about 80% of sales during the reported quarter, Freeport said.
As a sign that bode well for the future, Freeport-McMoRan increased its 2022 target for copper sales from £ 4.2 billion to £ 4.3 billion.
Honorable Mentions: Southern (NYSE 🙂 Copper (NYSE :), Rio Tinto (NYSE :), and Valero Energy Corporation (NYSE 🙂
2. Weyerhaeuser
Year-to-date performance: + 17.4%
Market Cap: $ 29.2 Billion
Weyerhaeuser (NYSE 🙂 – one of the world's largest privately owned timberland owners – is the largest softwood manufacturer in the United States and ranked number 1 in the industry for timber production capacity. It is also one of the largest manufacturers of wood products in North America.
Shares of the Seattle, Washington-based Timber Real Estate Investment Trust (REIT) have easily outperformed the broader market over the past year, gaining 200% since moving to a 10-year low in March 2020. from $ 13.10. date, shares are up more than 17%, reaping the benefits of higher timber prices.
WY stock climbed to a record high of $ 39.87 yesterday before finishing at $ 39.38. At its current level, Weyerhaeuser has a market capitalization of $ 29.2 billion.
Weyerhaeuser, which owns or manages approximately 11 million acres of forest land in the US, with an additional 14 million acres licensed in Canada, is expected to continue to benefit from improving fundamentals for the timber market in the coming months.
Natural resource prices have more than tripled in the past year, rising 350% due to a powerful combination of pandemic-related supply chain issues and rising homebuilders' demand amid a booming US housing market .
WY is scheduled to report first quarter earnings on Friday, April 30, before US markets open. Consensus estimates call for earnings of $ 0.88 per share on revenue of $ 2.52 billion, an increase of 389% and 46%, respectively, from the same period a year ago.
Top and bottom line figures aside, investors hope the company will update its full year outlook to reflect the positive impact of skyrocketing timber prices on its business.
Honorable Mentions: West Fraser Timber (NYSE:, Boise Cascade (NYSE :), and Universal Forest Products (NASDAQ 🙂
3. Bunge
Performance year-to-date: + 34.7%
Market Cap: $ 12.2 Billion
Bunge Limited (NYSE 🙂 is one of the world's leading agribusiness and food companies. Its core business includes the purchase, storage, transportation, processing and sale of agricultural and commodity products, mainly soybeans, corn and wheat, as well as rapeseed and sunflower seeds.
As such, the continued rise in grain prices should bode well for the company in the coming months. Corn futures rose to their highest levels since 2013 at the start of the week, while soybeans and wheat also rose to multi-year highs.
The St. Louis, Missouri-based grain and oilseed processor has seen its stock rise approximately 123% in the past 12 months, well above the returns of both the S&P 500 and S&P 500.
BG shares rose to a new high of $ 88.84 on Tuesday, a level not seen since July 2015, before settling at $ 88.34, giving it a market cap of about $ 12. 2 billion.
Bunge, which crushed its and earnings expectations in early February, then reports financial results ahead of the US market opening on Tuesday, May 4.
According to consensus estimates, the agricultural giant should post earnings per share of $ 1.54 for the first quarter, better than a loss of $ 1.34 per share in the same period a year ago.
Sales are expected to contract $ 10.2 billion, an 11% increase from sales of $ 9.2 billion in the same period a year earlier amid strong performance in the core agricultural services and agricultural services division. oilseeds from the grain merchant.
Taking this into account, BG's stock still looks attractive going forward – despite strong earnings since the start of the year – given its leadership position in the global cereal industry.
Honorable Mentions: Archer-Daniels-Midland (NYSE :), Corteva (NYSE 🙂 and Deere (NYSE 🙂
